DTN Retail Fertilizer Trends

OMAHA (DTN) -- As has been the case for the last several weeks now, average retail fertilizer prices continued to be just slightly lower the fourth week of July 2016, according to fertilizer retailers surveyed by DTN.

All eight of the major fertilizers dipped in price compared to the previous month, but once again none were down by any significance. DAP averaged $459 per ton, MAP $492/ton, potash $356/ton and urea also at $356/ton. 10-34-0 was at $543/ton, anhydrous $545/ton, UAN28 $257/ton and UAN32 $304/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.39/lb.N, anhydrous $0.33/lb.N, UAN28 $0.46/lb.N and UAN32 $0.48/lb.N.

The ongoing lowering fertilizer prices have an effect not only on farmers but also on the profitability of fertilizer companies. Mosaic announced recently that their second quarter will have a loss, although the company sees brighter days ahead as prices of its crop nutrients "bottom" and demand stays solid, according to Dow Jones.

Mosaic expects increased shipments of phosphates, its biggest segment by sales, to boost profitability in that business in the second half of 2016. In addition, expected near-record use of fertilizer by Brazilian farmers this year adds to the brighter outlook, the article reported.

According to Mosaic CEO Joc O'Rourke, soft U.S. crop prices weigh on the North American Grain Belt, but overall, "fertilizer is very affordable" for farmers now. U.S. farmers are projected to harvest a record corn crop this year and "higher yields means higher fertilizer removal from the soil, which tends to drive higher demand," O'Rourke said.

For the time being, DTN's retail fertilizer prices remain lower compared to a year earlier. All fertilizers are now double digits lower.

UAN32 is 14% lower, 10-34-0 is 15% less expensive and MAP 17% lower. DAP is 19% lower and both anhydrous and UAN28 are 21% less expensive. Urea is 24% less expensive and potash is 27% less expensive compared to last year.

DTN collects roughly 1,700 retail fertilizer bids from 310 retailer locations weekly. Not all fertilizer prices change each week. Prices are subject to change at any time.

DTN Pro Grains subscribers can find current retail fertilizer price in the DTN Fertilizer Index on the Fertilizer page under Farm Business.

Retail fertilizer charts dating back to November 2008 are available in the DTN fertilizer segment. The charts included cost of N/lb., DAP, MAP, potash, urea, 10-34-0, anhydrous, UAN28 and UAN32.

DTN's average of retail fertilizer prices from a month earlier ($ per ton):

DRY
Date Range	DAP	MAP	POTASH	UREA
July 27-31 2015	569	594	487	469
Aug 24-28 2015	567	586	476	447
Sept 21-25 2015	562	575	454	428
Oct 19-23 2015	547	562	435	413
Nov 16-20 2015	545	559	424	403
Dec 14-18 2015	532	544	410	392
Jan 11-15 2016	495	521	391	381
Feb 8-12 2016	479	499	378	369
Mar 7-11 2016	477	494	372	378
Apr 4-8 2016	480	504	369	387
May 2-6 2016	475	502	366	385
May 30-June 3 2016	473	499	363	375
June 27-July 1 2016	468	495	358	365
July 25-29 2016	459	492	356	356
LIQUID
Date Range	10-34-0	ANHYD	UAN28	UAN32
July 27-31 2015	636	689	324	354
Aug 24-28 2015	609	667	309	350
Sept 21-25 2015	589	646	297	343
Oct 19-23 2015	582	637	291	334
Nov 16-20 2015	579	629	287	332
Dec 14-18 2015	571	612	279	331
Jan 11-15 2016	572	581	272	319
Feb 8-12 2016	569	551	261	303
Mar 7-11 2016	562	541	262	312
Apr 4-8 2016	561	586	272	315
May 2-6 2016	560	589	274	321
May 30-June 3 2016	559	579	268	313
June 27-July 1 2016	554	566	266	304
July 25-29 2016	543	545	257	304

Russ Quinn can be reached at russ.quinn@dtn.com

(MZT/AG)

Copyright 2016 DTN/The Progressive Farmer. All rights reserved.